General Motors Settles Class Action Lawsuit

A 49-state class action with a projected value of as much as $165 million against General Motors has been settled. A state court judge granted preliminary approval to the proposed settlement in what is referred to as “the auto-repair litigation” against General Motors. The nationwide settlement involved a group of consumer suits. It’s unclear how many GM car owners actually paid for repairs covered by the settlement. The per-person recovery will result in most people receiving about 50% of costs incurred for repairs. Most folks paid between $600 and $900 for their repairs.

Under the terms of the settlement, the class would be split into three groups based on the cars they drive, the type of engine and the kinds of repairs performed. Plaintiffs would collect $50 to $800 per repair, with speedier repairs generating larger reimbursements. The settlement does not cap the total amount GM would pay class members. Suits were filed in California and Missouri against GM about five years ago, claiming the auto manufacturer used an engine coolant in factories that created performance problems in more than 30 models of GM cars, including the Oldsmobile Cutlass and Chevy Impala. All of the cases targeted Dex-Cool, a coolant GM started using with the 1995 model year. The suits asserted claims for breach of warranty and violations of unfair business practices statutes. A hearing will be held on August 29th to determine whether the proposed settlement is fair, reasonable and adequate to the class and should be granted final approval.